Buyers in the UAE are set to benefit from stronger legal protections under the country’s updated Civil Transactions Law, which introduces clearer rules for sales contracts, expands remedies for defective goods and extends the time limit for filing claims over hidden defects.
The reforms, which came into effect on January 1, 2026, are part of a wider effort to modernise civil law, reduce disputes and bring legal practice in line with today’s commercial realities.
Clearer rules for sales contracts
Under the revised law, provisions governing sales contracts have been clarified, including transactions based on samples or models. The amendments also strengthen safeguards for individuals who do not have full legal capacity, particularly in cases where real estate is sold at a grossly undervalued price.
New and clearer rules have also been introduced for dealing with latent, or hidden, defects, with the aim of making sales transactions fairer and easier to enforce.
More options for buyers
The law now gives buyers clearer legal options if goods or property do not meet agreed standards. Buyers may reject the goods, accept them with a price reduction, or request a defect-free replacement. These remedies are intended to provide greater flexibility and certainty when a purchase turns out to be faulty.
Longer time to file defect claims
One of the most significant changes is the extension of the limitation period for claims related to hidden defects. Previously, buyers had six months from the date of delivery to raise such claims. Under the new law, this period has been extended to one year. Longer timeframes may still apply if a contractual guarantee has been agreed between the parties.
Dr Binisaroj, Senior Legal Consultant at Khalifa bin Huwaidan Advocates, said the changes would boost buyer confidence.
“Under Article 555 of the old Civil Transactions Law, claims relating to hidden defects were not admissible after six months from delivery unless a longer guarantee was agreed,” she said. “The new law extends this to one year and expands the remedies available to buyers, allowing them to reject the goods, seek a price reduction or request a defect-free replacement.”
She added that the reforms reflect modern expectations of fairness in commercial dealings.
Impact on consumers and businesses
For consumers, the amendments mean more time to identify hidden defects, clearer legal rights when purchases go wrong, and stronger protection in high-value transactions, including real estate.
For businesses, the updated framework encourages higher quality standards, clearer disclosures and stronger compliance, while also reducing uncertainty in sales disputes. Although sellers face stricter obligations, the clearer legal boundaries are expected to help limit prolonged litigation.
Part of a wider legal overhaul
The sales contract reforms form part of a broader update to the Civil Transactions Law, aimed at improving clarity, fairness and trust in the legal system.
Dr Binisaroj said the changes demonstrate an evolving and confident legal framework. “The new law builds on tradition rather than abandoning it. It respects Sharia principles, strengthens judicial trust, protects vulnerable parties and supports economic activity, while using language that is clearer and more in tune with today’s world.”
